Abstract

This paper investigates regulatory outcomes of a few representative government regulations, including price-cap regulation, vehicle fleet size control, wage (per-order) regulation, income (hourly earnings) regulation, car utilization rate regulation, commission charge regulation, etc., in ride-sourcing markets. Specifically, we explore decisions of the platform and the resulting realized demand and supply under each of the regulations, and compare them with the targeted Pareto-efficient solutions. The regulatory outcomes are discussed in scenarios with homogeneous or heterogeneous drivers, mild or heavy traffic congestions, respectively. Our study offers some interesting insights that useful for the government in designing appropriate regulations.

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